Canada imports more DDGS from the US

Due to increasing cost for barley, Canadian farmers are importing more dried-distillers grains with solubles (DDGS) from the United States.

Poor crop conditions in Western Saskatchewan and Eastern Alberta are pushing up the price of Canadian barley, an important feed source. In response, buyers are turning to U.S. DDGS - including Rycom Trading, Canada's largest distillers grains importer.

Rycom's Senior Trader Ryan Slozka notes: "Farmers are concerned they may not get their crop in or the crop they do get will yield very little, which has caused them to lockup their bins and not sell. Poor weather has also caused inadequate pasture conditions."

Slozka notes that feedlot demand for DDGS has the potential to increase dramatically.Canada has been increasing its use of DDGS. While Mexico remains the leading importer of the feed coproduct, Canadian imports are on the rise. In 2008, according to U.S. Grains, Canada imported 772,000 tons of U.S. DDGS, up 453,000 tons from 2007.